Tom Paine
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Update: WSJ reports that
Dreamworks Animation CEO Jeffrey Katzenberg will step down from the company if Comcast acquires it. Presumably, this gives more substantiation to the entire acquisition scenario.
Comcast is reportedly in talks to buy DreamWorks Animation,
the Wall Street Journal reports.
The reported price, if a deal occurred, would be more than $3 billion, a premium over the studio's current market value of $2.35 billion.
DreamWorks, founded in 2004 as a new kind of studio, has had some major successes, but is often perceived as too small for a stand alone studio. Like a small driller, it suffers if it hits a few dry wells. Last year a series of less than successful releases forced the company to cut 500 jobs, close its studio in Northern California and make management changes.
For Comcast, the deal would expand its successful animation business, with major implications for its theme parks and international expansion.
But
the LA Times cautions that there have been several prior discussions by others with DreamWorks that ended without results.
The Journal suggests a deal would make Comcast a more formidable challenger to Disney in family entertainment, bringing back memories of its failed attempt to acquire Disney in 2004. Comcast reports earnings tomorrow, but rarely comments on breaking news at that time.
